Question 1

An order of specific performance

Accepted Answer

A) would always apply to the buyer of real property (i.e.,land and buildings). 
B) requires one party to a contract to refrain from acting in a particular manner. 
C) requires that the defendant do a certain act,usually something not specified in the contract. 
D) requires that the defendant do a certain act,usually fulfilling his or her part of the contract. 
E) requires that the party in breach pay a specific monetary sum to the other party. 
A) would always apply to the buyer of real property (i.e.,land and buildings). 
B) requires one party to a contract to refrain from acting in a particular manner. 
C) requires that the defendant do a certain act,usually something not specified in the contract. 
D) requires that the defendant do a certain act,usually fulfilling his or her part of the contract. 
E) requires that the party in breach pay a specific monetary sum to the other party.

Question 2

Should you win a money judgment in the court,how would you collect the money?

Accepted Answer

The force of the court judgment is usual

Question 3

When there is significant imbalance in the bargaining power of the parties,the stronger party can take an unfair advantage of the weaker one by extracting agreement to unconscionable terms.With respect to exemption clauses,what obligations have been imposed on Internet retailers pursuant to Ontario's consumer protection laws?

Accepted Answer

Internet retailers are required to provi

Question 4

A party to a contract may break the contract in various ways.Explain.

Accepted Answer

A party to a contract may break it in th

Question 5

Hastro Toys Mfg.operates on a "just-in-time" inventory basis.When one of its suppliers missed a 2:00 p.m.delivery of a key component,the entire assembly line was shut down for the balance of the day.Hastro is suing its supplier for ________ damages.

Accepted Answer

A) reliance 
B) expectation 
C) liquidated 
D) consequential 
E) general 
A) reliance 
B) expectation 
C) liquidated 
D) consequential 
E) general

Question 6

It is contrary to public interest to allow an exemption clause to insulate an offending party for conduct approaching criminal or fraudulent behaviour.

Accepted Answer

A) True 
 B)False

Question 7

A breach will discharge a contract if

Accepted Answer

A) the injured party elects to treat it as discharging the contract. 
B) the breach is of the whole contract or an essential part of the contract. 
C) the breaching party decides to abandon its obligations under the contract as a result of the breach. 
D) the breach causes injury to the innocent party. 
E) the innocent party suffers significant financial loss. 
A) the injured party elects to treat it as discharging the contract. 
B) the breach is of the whole contract or an essential part of the contract. 
C) the breaching party decides to abandon its obligations under the contract as a result of the breach. 
D) the breach causes injury to the innocent party. 
E) the innocent party suffers significant financial loss.

Question 8

An injured party cannot elect to treat a breach as discharging him or her from its obligations under a contract unless

Accepted Answer

A) the breaching party elects to treat the breach as discharging him or her from contractual obligations. 
B) the breaching party suffers financial loss. 
C) the innocent party suffers financial loss. 
D) the breach causes physical injury. 
E) it is of the whole contract or an essential part of the contract. 
A) the breaching party elects to treat the breach as discharging him or her from contractual obligations. 
B) the breaching party suffers financial loss. 
C) the innocent party suffers financial loss. 
D) the breach causes physical injury. 
E) it is of the whole contract or an essential part of the contract.

Question 9

Damages are not available for an anticipatory breach because the time for performance has not arrived.

Accepted Answer

A) True 
 B)False

Question 10

George Edwards has just bought a brand new furnace from Henry's Furnace Company.Towards the end of the installation of the furnace,a piece of piping falls on the furnace and badly scratches one side of it.Because of the scratch,George does not want to pay for the furnace.In a lawsuit by Henry's Furnace Company for payment,

Accepted Answer

A) George will successfully defend the lawsuit because the scratch is a major breach and terminates the contract. 
B) George will lose the lawsuit because the scratch is a minor breach of the contract. 
C) George will successfully defend the action because a brand new furnace is not the same as a scratched furnace. 
D) George will lose the lawsuit using the maxim res ipsa loquitur. 
E) George will successfully defend the lawsuit because the scratch fundamentally changed the contract. 
A) George will successfully defend the lawsuit because the scratch is a major breach and terminates the contract. 
B) George will lose the lawsuit because the scratch is a minor breach of the contract. 
C) George will successfully defend the action because a brand new furnace is not the same as a scratched furnace. 
D) George will lose the lawsuit using the maxim res ipsa loquitur. 
E) George will successfully defend the lawsuit because the scratch fundamentally changed the contract.

Question 11

Buildco Limited enters into a contract that has an exemption clause.Buildco's employees,during the course of constructing the home of Jack,fail to exercise care,as a result of which the home is damaged and Buildco is liable to Jack.Will Buildco be able to rely on the exemption clause?

Accepted Answer

The courts generally frown on the use of

Question 12

Chin Chang agreed to buy an antique dresser from Pedro for $2500.He made a down payment of $750 and agreed to return and pick the item up at a later date.However,when he returned,Pedro refused to give him the furniture,saying that he had found a buyer who would pay a higher price.Chin Chang may be entitled to which of the following equitable remedies?

Accepted Answer

A) injunction 
B) specific performance 
C) rectification 
D) compensation 
E) damages 
A) injunction 
B) specific performance 
C) rectification 
D) compensation 
E) damages

Question 13

How can the judgment creditor extract money from the judgment debtor?

Accepted Answer

A) by obtaining a garnishee order against the creditor's wages 
B) by instructing a court-appointed councilor to set up a payment schedule,which,if not followed,can amount to contempt of court for the debtor 
C) by relying on the plaintiff's legal council,who is responsible for collecting the money awarded in the judgment 
D) by requesting the sheriff to levy execution against the assets of the debtor 
E) by having the court collect the money through its authorized collection agency 
A) by obtaining a garnishee order against the creditor's wages 
B) by instructing a court-appointed councilor to set up a payment schedule,which,if not followed,can amount to contempt of court for the debtor 
C) by relying on the plaintiff's legal council,who is responsible for collecting the money awarded in the judgment 
D) by requesting the sheriff to levy execution against the assets of the debtor 
E) by having the court collect the money through its authorized collection agency

Question 14

Specific performance will always be granted to a purchaser of land.

Accepted Answer

A) True 
 B)False

Question 15

A promissor is entitled to enforce a contract when it has performed to the best of its ability even though its performance does not comply in a major way with the requirements of a contract.

Accepted Answer

A) True 
 B)False

Question 16

Peevyhouse v.Garland Coal & Mining Company is a decision of a United States court.Given the decision in this case,and applying the rule of stare decisis as it pertains to decisions of Canadian courts,just how valuable is the decision in this case,and should it be adopted in Canada?

Accepted Answer

This case held that the cost of performa

Question 17

The effect of the doctrine of substantial performance is that

Accepted Answer

A) where there is substantial performance,a court will entertain a suit for damages for breach of contract. 
B) a promisee cannot seize upon a trivial failure of performance to avoid his or her obligations under a contract. 
C) where there is substantial performance,a court will not entertain a suit for damages for breach of contract. 
D) the promisee who has substantially performed a contract is entitled to damages. 
E) the promisor who has substantially performed a contract is entitled to damages. 
A) where there is substantial performance,a court will entertain a suit for damages for breach of contract. 
B) a promisee cannot seize upon a trivial failure of performance to avoid his or her obligations under a contract. 
C) where there is substantial performance,a court will not entertain a suit for damages for breach of contract. 
D) the promisee who has substantially performed a contract is entitled to damages. 
E) the promisor who has substantially performed a contract is entitled to damages.

Question 18

Exemption clauses are

Accepted Answer

A) not used in contracts for the sale of goods. 
B) strictly construed by the courts against the party that seeks to rely on them. 
C) not considered by courts. 
D) strictly construed by the courts against the parties for whom they are drawn. 
E) not used in employer-employee contracts. 
A) not used in contracts for the sale of goods. 
B) strictly construed by the courts against the party that seeks to rely on them. 
C) not considered by courts. 
D) strictly construed by the courts against the parties for whom they are drawn. 
E) not used in employer-employee contracts.

Question 19

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

Accepted Answer

Exemption clauses are clauses in contrac

Question 20

Which of the following is NOT an equitable remedy?

Accepted Answer

A) injunction 
B) specific performance 
C) rescission 
D) punitive award 
E) quantum meruit 
A) injunction 
B) specific performance 
C) rescission 
D) punitive award 
E) quantum meruit

Exam 34: Breach of Contract and Its Remedies

An order of specific performance

Should you win a money judgment in the court,how would you collect the money?

A party to a contract may break the contract in various ways.Explain.

Hastro Toys Mfg.operates on a "just-in-time" inventory basis.When one of its suppliers missed a 2:00 p.m.delivery of a key component,the entire assembly line was shut down for the balance of the day.Hastro is suing its supplier for ________ damages.

It is contrary to public interest to allow an exemption clause to insulate an offending party for conduct approaching criminal or fraudulent behaviour.

A breach will discharge a contract if

An injured party cannot elect to treat a breach as discharging him or her from its obligations under a contract unless

Damages are not available for an anticipatory breach because the time for performance has not arrived.

Buildco Limited enters into a contract that has an exemption clause.Buildco's employees,during the course of constructing the home of Jack,fail to exercise care,as a result of which the home is damaged and Buildco is liable to Jack.Will Buildco be able to rely on the exemption clause?

How can the judgment creditor extract money from the judgment debtor?

Specific performance will always be granted to a purchaser of land.

A promissor is entitled to enforce a contract when it has performed to the best of its ability even though its performance does not comply in a major way with the requirements of a contract.

Peevyhouse v.Garland Coal & Mining Company is a decision of a United States court.Given the decision in this case,and applying the rule of stare decisis as it pertains to decisions of Canadian courts,just how valuable is the decision in this case,and should it be adopted in Canada?

The effect of the doctrine of substantial performance is that

Exemption clauses are

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

Which of the following is NOT an equitable remedy?

Law, society, and Business

The Machinery of Justice

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Privacy

Filters